Segment Disclosure

9 Months Ended

Jul. 31, 2015

Segment Reporting [Abstract]

Segment Disclosure

Segment Disclosure

Certain disclosures are required for operating segments, products and services, geographic areas of operation and major customers. Segment reporting is based upon the “management approach,” i.e., how management organizes the Company’s operating segments for which separate financial information is (1) available and (2) evaluated regularly by the Chief Operating Decision Makers (CODMs) in deciding how to allocate resources and in assessing performance. Synopsys’ CODMs are the Company’s two Co-Chief Executive Officers.

The Company operates in a single segment to provide software products and consulting services in the EDA software industry. In making operating decisions, the CODMs primarily consider consolidated financial information, accompanied by disaggregated information about revenues by geographic region. Specifically, the CODMs consider where individual “seats” or licenses to the Company’s products are located in allocating revenue to particular geographic areas. Revenue is defined as revenues from external customers. Goodwill is not allocated since the Company operates in one reportable operating segment. Revenues related to operations in the United States and other geographic areas were:

	Three Months Ended   July 31,				Nine Months Ended   July 31,
	2015		2014		2015		2014
	(in thousands)
Revenue:
United States	$	275,625	$	268,228	$	839,325	$	745,458
Europe	80,257		65,881		227,165		203,645
Japan	50,974		61,517		165,067		184,219
Asia-Pacific and Other	148,949		126,186		423,495		385,138
Consolidated	$	555,805	$	521,812	$	1,655,052	$	1,518,460

Geographic revenue data for multi-region, multi-product transactions reflect internal allocations and are therefore subject to certain assumptions and the Company’s methodology.

One customer accounted for 13.1% and 10.5% of the Company’s unaudited condensed consolidated revenue in the three months ended July 31, 2015 and 2014, respectively, and accounted for 12.3% and 10.7% of the Company’s unaudited condensed consolidated revenue in the nine months ended July 31, 2015 and 2014, respectively.